By Chen Huifen

(SINGAPORE) Barrack Obama's presidential win came as no surprise to the Singapore business community, which is largely positive on the change in US leadership but waits to see how the new man will manage the many challenges that await him.

Some are also concerned that having a Democrat president could imply a shift toward protectionism, as a great amount of attention is expected to be paid in fixing its domestic economy.

'Whilst we expect President-elect Obama to focus on fixing the immediate domestic challenges that are weighing heavily on the American people and businesses, we would like to remain optimistic that his administration will reaffirm the US's strong commitment to global trade,' said Singapore Business Federation CEO Teng Theng Dar.

Local businesses are keeping their eyes on how foreign trade policies could pan out. To a certain degree, the Democrats are opposed to free trade deals and have spoken about revisiting the North America Free Trade Agreement.

'I think we may see more insularism on the part of the US than under the Republican administration,' said Singapore International Chamber of Commerce chief executive Philip Overmyer. 'As far as international trade and free trade agreements, the expansion of American companies' business outside of US go, I think we will see that it will be harder for them to do these.'

But Predeep Menon, executive director of the Singapore Indian Chamber of Commerce and Industry said that Mr Obama may be playing to the gallery by blaming free trade deals as the root of America's problems. Now that the campaign is over, he is hopeful that the new US president would not reverse the trend towards freer trade.

'It's also in US' own interest to do so because you may be importing a lot from the outside world, but American MNCs are also going overseas and making a lot of money,' he added. 'So I don't think it's as clear as shutting plants and stopping imports. The sense is that they need to keep channels open. However I think he will definitely want to try and force the emerging economies like China and India to open up faster to make it seem fairer for American companies.'

Echoing similar views, Bain & Co director Charles Ormiston said: 'I do not anticipate that Obama will undertake overt protectionist measures, but I do believe he will be tested hard by key constituencies which helped to get him elected. I think his primary challenges will be domestic: health care, creating a bottom to the housing price drop, re-building and re-regulating the banking system, developing an energy and infrastructure policy and trying to reduce the large deficits (government and trade). This is an extremely full plate.'

A few are of the view that a childhood study stint in Indonesia would make Mr Obama friendlier to this part of the world. The Singapore Chinese Chamber of Commerce & Industry said it expects more attention given to Asean as a whole, 'given Obama's background'. Added EMC Corp Asia Pacific & Japan president Steve Leonard: 'While it is early to predict the impact of his presidency on international trade, people will be carefully watching whom he will appoint to key cabinet portfolios.'

That domestic issues are of utmost importance to the US now is a no-brainer. And local businessmen agree that if it can address them, Asia and Singapore will grow in tandem.

'It is clear now that there is no de-coupling of the US and global economies,' said KPMG managing partner Danny Teoh. 'So the faster he gets the US economy stabilised, the better it would be for Singapore and the world at large.'

The US is a key trading partner of Singapore, having signed a free trade agreement with the island in 2003. Between 2004 and 2006, bilateral trade grew 40 per cent to $90 billion.

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